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LTIMindtree Share Price Hits Over One-Month High, Citi Sees Firm Adapting To Industry Changes

Nov 27, 2024 - ndtvprofit.com
Citi Research has maintained its 'sell' rating on LTIMindtree Ltd.'s stock despite the company's share price hitting a month-high. The brokerage cites concerns about revenue growth and margin improvement trajectory, and predicts an 8.2% downside with a target price of Rs 5,710 per share. However, Citi acknowledges that LTIMindtree is adapting well to industry changes and showing better EBIT growth. The company's ambition of reaching a revenue target of $10 billion or Rs 84,471 crore is seen as feasible due to its strong foundation, marquee client base, and strategic acquisitions.

The share price of LTIMindtree rose by 0.98%, the highest level since October 18, but later traded flat at Rs 6,225.90 apiece. The stock has fallen 1% on a year-to-date basis, but has risen 12% in the last 12 months. Of the 42 analysts tracking the company, 22 maintain a 'buy' rating, eight recommend a 'hold' and 12 suggest 'sell'. The average 12-month analysts' consensus price target implies an upside of 3.4%.

Key takeaways:

  • LTIMindtree Ltd.'s share price rose to its highest level in over a month following Citi Research's comments post an analysts' meet, praising the company's adaptation to industry changes and EBIT growth.
  • Citi Research maintains a 'sell' rating on the stock with a target price of Rs 5,710 per share, implying a downside of 8.2%, due to concerns about revenue growth and margin improvement trajectory.
  • The company has a revenue target of $10 billion or Rs 84,471 crore, driven by strong foundations in BFSI and technology verticals, horizontal capabilities, a marquee client base, and top-tier partnerships.
  • The share price of LTIMindtree rose as much as 0.98%, the highest level since Oct. 18, and traded flat at Rs 6,225.90 apiece as of 12:04 p.m. The stock has fallen 1% on a year-to-date basis, but risen 12% in the last 12 months.
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